Baioo's Fall Clouds Hong Kong's Allure for Gaming IPOs

But When It Comes to Valuations, Hong Kong Can Be a Better Place to List

By

Prudence Ho

Updated April 15, 2014 8:14 a.m. ET

The global selloff in technology stocks has hammered shares of Chinese online-game developers in Hong Kong, putting a cloud over potential initial public offerings in the sector, at least for now.

Shares of Baioo Family Interactive, whose popular children's game Aobi Island features bearlike creatures that go on adventures, plunged in the two days after its offering last week. Bankers say that decline will make it harder for other...